Dogecoin (DOGE) snapped a four-day decline on June 25, finding support at the crucial 20-day Exponential Moving Average (EMA) near $0.12. Buyers aggressively defended this level, propelling DOGE upwards. Subsequently, the meme coin flipped the EMA into support, marking a bullish shift in momentum.
Can Dogecoin Overcome Resistance?
Currently, Dogecoin faces resistance from both the 50-day and 200-day EMAs. A decisive breakout above this confluence zone could ignite a rally towards the 100-day EMA at $0.134. If bulls successfully conquer this hurdle, DOGE may surge to $0.143 before encountering selling pressure.
Conversely, failure to sustain the upward momentum could drag DOGE back to the support levels of $0.12 and $0.114. The Relative Strength Index (RSI) hovers around 54.18, indicating neutral market sentiment.
Dogecoin Whales Accumulate, Fueling Price Hopes
On-chain data reveals a compelling bullish narrative for Dogecoin. Medium and large Dogecoin holders, possessing between 10 million and 1 billion coins respectively, have been steadily accumulating. This behavior typically precedes price appreciation.
The accumulation trend suggests that market participants anticipate a bullish future for Dogecoin. A rising tide lifts all boats, and this collective confidence could drive the price higher.
Falling Wedge Pattern Signals Potential Breakout
Technically, Dogecoin has formed a bullish falling wedge pattern. This chart formation suggests a reversal of the downtrend is imminent. A breakout from the wedge could propel DOGE upwards by approximately 88%, targeting a price of $0.242.
Increased trading volume accompanying the breakout would bolster the pattern’s validity and enhance the probability of a successful rally.
Dogecoin Holder Count Surges, Indicating Growing Adoption
Another bullish indicator for Dogecoin is the rising number of holders. Santiment data shows that Dogecoin ranks second in terms of total holders, trailing only Litecoin. This metric reflects growing adoption and investor interest in the meme coin.A larger holder base can contribute to price appreciation due to increased demand and reduced selling pressure. Moreover, it signifies a healthy ecosystem with a growing community of supporters.
Conclusion
Dogecoin’s recent price action, coupled with on-chain metrics and technical analysis, paints a bullish picture. While challenges persist, the confluence of factors suggests that DOGE has the potential for significant upside. Investors should closely monitor price action, volume, and on-chain indicators to capitalize on potential opportunities. However, as with any investment, conducting thorough research and risk management is crucial.
